Apple stikes a $4.3 billion OLED display deal with Samsung

iPhone 8 is expected to generate sales as high as 70 million units overall.

Apple has just struck a new deal with Samsung Display which is a subsidiary of Samsung. As per the deal, Samsung Display will be supplying an additional 60 million units of OLED displays, worth of 5 trillion won (US$4.3 billion), for the next-generation iPhone.

However, this is not the first time that the two companies have struck a deal. Last year, Samsung Display had made a deal with Apple to supply 100 million OLED display panels for the upcoming iPhone 8.

Besides, on speculating why Apple has added extra 60 million flexible OLED screens to the contract, it's because the OLED iPhone 8 is expected to generate sales as high as 70 million units overall. Moreover, the combined 160 million units of OLED panels are expected to make up almost 80 percent of the entire sales for Apple this year.

Interestingly, as Samsung and Apple, the leading smartphone makers will be adopting OLED for their flagship models in 2017, other smartphone brands might face supply shortage problems. Notably, Samsung Display owns 95 percent of the mobile OLED market.